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QUESTION

This is due at 10 pm tonight! Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit.

I am so confused please help! This is due at 10 pm tonight!

Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $150 for each of its 20,000 members. Past experience indicates the population served will average two visits per year.

B) Sketch two CVP analysis graphs for the clinic- one with number of visits on the X axis and one with number of members on the X axis.

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